Most organizations’ manufacturing activities account for less than 25% of the total product value.
Much of the value-add is achieved earlier in the procurement process, where there are greater, more obvious opportunities to separate value from waste, reducing lead times and costs, and improving quality.
That may sound straightforward, but the distinction isn’t always clear. Increasingly, procurement entails far more than buying the highest quality materials and services at the lowest cost. Procurement responsibilities now routinely include market research, vendor evaluation and integration, and establishing fundamental operational requirements.
This is where our market-proven transformation expertise, combining the key principles of Lean with cutting-edge digital technologies, has a transformative impact. Our approach enables you to separate procurement activities that constitute ‘necessary waste’ from those that create genuine value. This paves the way to the reduction or elimination of inefficient and ineffective processes, supporting swift and dramatic improvements to cashflow and bottom line.
By ensuring each stage of the procurement process ‘pulls’ products or services through the value chain, for example, you can not only stabilize that chain, but also improve the balance sheet by reducing work-in-progress and applying a clear, standardized and efficient process for sourcing parts or materials. This in turn enhances reliability and flexibility, and creates genuinely agile procurement and production processes.
At FP, we specialize in helping companies apply best practice methodologies to the procurement function, enabling them to optimize the buying process, meet fluctuating customer and navigate market volatility. We work side-by-side with your teams to put the right solutions in place, so we can be sure we deliver transformation that lasts.
